7 MOTIVATION

CHAPTER OVERVIEW

The nature and importance of motivation as a management

tool

The needs of employees while at work

Some of the theories of motivation that can be applied in the

workplace

The practical methods of motivation used by businesses, both

financial and non-financial.
 7.1 WHAT IS
MOTIVATION?
 WHAT IS MOTIVATION?

Motivation describes the factors that arouse,

maintain and channel behaviour towards a goal
There are two ways we can think of motivation
at work and what causes it:
Motivation can be the will to work due to enjoyment of the
work itself
This implies that motivation comes from within an individual
employee
The will or desire to achieve a given target or goal that is the
result of external factors
Such as the promise of a reward, or to avoid the threat of
punishment

Does motivation come from within or is it a

result of an external factor?
What do you think? What motivates you?
 WHY IS MOTIVATION IMPORTANT?

Having a well-motivated workforce is vital to achieving

objectives.
Most relevant for organizations providing services (i.e. airlines,
restaurants, etc.)

Characteristics of a highly motivated workforce:

Low level of absenteeism
Low labor turnover
High levels of labor productivity (this results in low production costs
meaning the company can sell their products more cheaply or
maintain price levels and enjoy greater profits)
CASE STUDY: AL RASHAD INTERNATIONAL
SHIPPING CO.
1. Explain why teamwork might improve motivational levels
within Al Rashad.
It allows employees to meet at least some of their social needs at work
by interacting with others as part of their regular working day. Social
needs are regarded as an important way to motivate employees.
Working as part of a team, employees may be given greater authority
to take decisions making them feel more valued.

1. Discuss the benefits that you think the company might gain
from having a well-motivated workforce.
Less absenteeism; lower labor turnover; higher productivity
 WHY IS MOTIVATION IMPORTANT?

High levels of motivation of fer business other benefits:

Motivated employees are usually contented, making it easier to
attract other employees
The firm will have a reputation as a good employer which helps to build
their brand
Modern businesses protect their public image and spend lots of
money to enhance it
Increasingly more important to have good customer service and
motivated employees are essential for this
7.2 HUMAN NEEDS
 HUMAN NEEDS

Human needs can be defined as the elements required for

survival and normal mental and physical health.
Artur Manfed Max-Neef is a
Chilean economist who is perhaps best known for his work setting
out the fundamental human needs (few, finite and interrelated)
Believed they are all the same regardless of country or
culture.
MAX-NEEF FUNDAMENTAL HUMAN NEEDS

Subsistence (food, shelter and work)

Protection (social security and health care systems)
Affection (friendship and family)
Understanding (education and literature)
Participation- in groups and communities results in
responsibilities and rights
Leisure (games or other non -work activities)
Creation of objects and ideas
Identity (language, religion or culture)
Freedom (equal rights for all)
HOW HUMAN NEEDS MAY BE SATISFIED AT
WORK
Employment of fer s the oppor tunity to fulfill some of these needs:
Subsistence: Can provide income suf ficient to allow people to have
shelter, food, clothes etc.
Protection: Job security in the form of a long contract, health care and
pensions
Par ticipation: Working in teams/small groups or responsibilities
Creation: Most work environments of fer oppor tunities for creativity and
some may require this as an impor tant par t of the job (adver tising,
architecture, construction, etc.)
Freedom: In democratically managed business, employees may be more
empowered thus leading to higher control of working lives
 CASE STUDY: WORKING AT GOOGLE

1. Explain how the human needs of participation and creation

may be met by working at Google.
Encourages staff to share ideas and opinions on developing new
products; Encourages activities such a film and wine tasting; Office
layout encourages communication and sharing

2. Evaluate the extent to which human needs are met by

working at Google.
Effective at meeting affection needs at work employees are
encouraged to interact; Participation in groups and communities
through work and leisure activities offered; Offers secure contracts and
competitive levels of pay; Creativity; Meets its employees needs and
publicizes this to attract more talented people
7.3 MOTIVATION
THEORISTS
 MOTIVATION THEORISTS

Many dif ferent views exist on motivation exist and dif fer
because it is not clear why people work
Is it to gain money?
To enjoy social interaction with other humans?
To fulfil personal needs (i.e. achievement, recognition)?
Is it a combination of some or all of these?

Motivation can be broadly classified into two perspectives

Content theory: considers what motivates people; concerned with
individual needs and goals
Process theory: considers how motivation occurs
 THE SCHOOL OF SCIENTIFIC
MANAGEMENT
Motivating workers became important issue in the 19 th
century

Mangers developed the division of labor to its fullest extent in

an attempt to increase ef ficiency and improve
competitiveness
Mass production plus division of labor increased factory work
increasing monotony
Lead to investigations into how to motivate employees

Division of labor is the breaking down of production into

series of small tasks, carried out repetitively by relatively
unskilled employees.
 FREDERICK WINSLOW TAYLOR

He was the most notable of the early writers on motivation

Known as the father of scientific management

Scientific Management: The systematic study of the
relationships between people and tasks for the purpose of
redesigning the work process to increase efficiency .
Believed people motivated solely by money
 THE KEY ELEMENTS OF TAYLORISM

Started doing work studies to measure and analyze the tasks

necessary to complete the production process
Used a stopwatch to measure how long various activities took
Sought the most efficient methods of completing tasks
Encouraged division of labor (breaking down production into small
tasks)

Identified the most ef ficient employees and their approaches

Using this he detailed normal times in which duties should be
completed
Assessed individual performance against these norms
 THE KEY ELEMENTS OF TAYLORISM

Employees are provided with equipment needed to carry out

their tasks
Tools and machines sized to those operating/using them
Includes training and clear instructions of duties

Designed and implemented piece -rate pay system

Employees were paid according to the amount they produced
Developed differential piece-rate pay to encourage efficiency

Close supervision of the workforce

Ensures employees continue making maximum effort
 THE KEY ELEMENTS OF TAYLORISM

Positives:
Raised efficiency and productivity decreasing number of employees
needed

Negatives:
Unpopular with shop-floor employees
Forced them to work hard
Jobs of less efficient workers under threat
Resulted in strikes by dissatisfied workers
 TAYLORS LEGACY

Entire theory was based on employees were only motivated by

money
Ignored the social dimension

Forced employees to work very hard for a meagre wage

Workers endlessly complete monotonous tasks

Considerable hostility to his approach from employees,

politicians and the business community

Established management as a scientific subject worthy of

research and study

His techniques encouraged mass production and conveyor belt

system
 CASE STUDY: SALARY PACKAGES
IMPORTANT FOR INDIAN EMPLOYEES
1. Explain the possible reasons why salaries are an important
element in choosing jobs for younger people.
Younger people have little financial security; Need sufficient pay to
cover basic needs

2. Discuss other possible situations in which salary might be

considered very important by employees.
Some have short working lives (professional athletes); Some jobs are
stressful and high pressured; Employees have unique skills or
knowledge
 THE HUMAN RELATIONS SCHOOL

A fundamental weakness is that the scientific approach

ignored the social needs of employees

Human Relations School concentrated on sociological aspects

of work
What motivates employees outside of just money?

Elton Mayo
Australian psychologist
Started as a disciple of F.W. Taylor
Believed in the importance of scientific management to business
efficiency
 THE HAWTHORNE EFFECT

Mayos views were altered as a result of research done at the

Western Electric Co. in Chicago
Examined the effects of changes in lighting on productivity
Researchers anticipated better lighting = more productive workers
Productivity increased in those given improved lighting AND those
whose lighting had not been changed
Why?
The employees were responding to the level of attention they were
receiving and as they were working together as part of a group

From these experiments Mayo concluded that motivation was

dependent upon:
The type of job being carried out and the type of supervision given to
the employee
Group relationships, group morale and the sense of worth
experienced by individuals
THE IMPLICATIONS OF THE HAWTHORNE
EFFECT

Following publication of Mayos findings, managers became

aware of the importance of meeting social needs of
individuals at work
Social environments and informal working groups were recognized as
positively influencing productivity

Led to a number of developments during the 1940s -1950s:

Personnel departments were established ensured social needs
were met when possible
Provided a range of sporting and social facilities
Work outings and trips became more popular
Managers gave more attention to teams and teamworking
 THE NEO-HUMAN RELATIONS SCHOOL

Also called the new Human Relations School

Began in 1950s by Abraham Maslow and Frederick Herzberg
Considered psychological aspects of employment and argued
that motivation lies with each individual employees
Encouraged managers to treat their employees as individuals,
with dif ferent needs and aspirations.
Because people are dif ferent, techniques required to
motivate will also dif fer
CASE STUDY: MOTIVATING ACCOUNTANCY
GRADUATES
1. Explain why employees may be motivated by pay.
Pay is important in order to meet physiological needs (food and shelter)
Helps with self esteem (higher pay relates to higher status)
Piece-rate pay motivates some

2. To what extent do the results of this survey show that pay as

a motivator is outdated and irrelevant for todays
employees?
Only true for 18% of employees; 44% rated training as the most
important as it helps them acquire new skills and knowledge and
possibly helps with promotions; many employees are motivated working
at non-profits because it meets self esteem needs; The survey was
limited in scope (1,000 grads in single industry) and too risky to draw
conclusions
 MASLOWS HIERARCHY OF NEEDS

Employees have a series of needs they seek to fulfil at work

Set into a hierarchy with lower needs on the bottom
Once a lower level need is satisfied, individuals strive to satisfy needs
further up

Businesses can motivate employees by offering them a chance

to fulfil higher needs once lower ones have been satisfied
With basic physiological needs (fair pay) satisfied, employees can be
motivated further by offering security needs (continuing employment)
If social needs are met, employee could next be motivated by opportunity
to satisfy self esteem needs (taking responsibility for major project,
chance of achievement, recognition)

Attractive idea as it allows for a more individualistic approach

(not all people are the same)
 FREDERICK HERZBERGS TWO-FACTOR
THEORY
First part of his theory is related to the environment of the job
He identified a range of factors and called these
hygiene/maintenance factors
These factors are all around the job, but not part of the job itself

Hygiene factors:
Company policies and administration
Supervision of employees
Working conditions
Salary
Relationship with fellow workers (at the same level)
 FREDERICK HERZBERGS TWO-FACTOR
THEORY
His crucial finding was that hygiene factors do not lead to motivation,
but without them employees may become dissatisfied

An employee cannot be motivated by pay but could be dissatisfied by

inadequate pay.

Second finding established factor s with the ability to motivate

(Motivators)
Relate to the job itself and can be used to positively motivate employees
Should be used simultaneously with hygiene factors

Motivators:
Personal achievement of goals and targets
Recognition for achievement
Interest in the work itself
Responsibility for greater and more complex duties
Personal growth and advancement
 CASE STUDY: FREDERICK HERZBERG

1. Using examples, distinguish between Herzbergs motivators

and hygiene factors.
Motivators are satisfiers that relate to the job itself and create positive
motivation (i.e. personal achievement, recognition, responsibility)
Hygiene factors all relate to the job environment and can potentially cause
dissatisfaction (i.e. supervision, pay, working conditions)

2. Discuss the possible reasons why a book on employee

motivation was voted one of the twentieth centurys most
important management books.
Took the theory and practice of motivating employees to another level by
considering psychological factors; It was a major step forward for
management thinking; He combined academic expertise in psychology and
practical work within businesses; Was new and creative; Motivation
impacts performance and is a major determinant of a businesss
competitiveness and getting the best out of employees has become
important
 PROCESS THEORIES OF MOTIVATION

Look at what people are thinking about when they decide

whether or not to put ef fort into a particular activity

See the individual as an active decision -maker, rather than

just trying to meet certain needs

Emphasize the actual process or method of motivation

 VICTOR VROOMS EXPECTANCY THEORY

Developed in the early 1960s

Argued that motivation depends on employees expectation of
the results of their ef fort
If an employee knows what they want from an outcome and
believe they can achieve it, then they will be motivated to
accomplish it
Maximize pleasure and minimize pain.
Consists of 3 major elements
 EXPECTANCY

The confidence that employees may have in their ability to

complete a particular activity or task to an acceptable
standard

Demotivation occurs when the employee believes they are not

capable of completing the task satisfactorily
 INSTRUMENTALIT Y

The belief that the completion of a particular activity will

lead to a desired outcome

Employee has high confidence that specific activities will

result in achievement of a valued reward

Greater if employees recognize clear link between actions

and rewards
Must have confidence they will receive promised rewards

A salesperson may have high instrumentality is he/she is

part of a clear bonus scheme and has received bonuses in
similar circumstances previously
 VALENCE

The strength of a persons desire to achieve a specific

outcome
Positive if a person prefers the outcome to not achieving it
If the person is indifferent, then the valence will be 0
High values of valence mean that an outcome is highly attractive

For example, a salesperson may find a monetary bonus for

achieving an agreed upon target very desirable
Must have confidence in his/her ability to achieve the number of
sales necessary
DAVID MCCLELLANDS THEORY OF NEEDS

An individuals motivation depends upon their needs and that

these are shaped by ones life experience

Three types of motivational need:

Need for achievement (n-Ach)
Need for authority and power (n-Pow)
Need for affiliation (n-Aff)

Believed these three needs exist, to dif fering extents in all

employees. The combination determines:
Each employees behavior in terms of what motivates them
How they manage to motivate others
 THE NEED FOR ACHIEVEMENT (N-ACH)

Aim for excellence

Will likely avoid low risk situations as they derive little

satisfaction from meeting targets that are not challenging

Also avoid high risk situations for fear of not achieving

Aims to attain realistic but challenging goals ideally those

with 50% chance of success or better

Has a strong need for feedback on achievement and progress

 THE NEED FOR AUTHORIT Y AND POWER
(N-POW)
Fall into one of two categories:
Need for personal power and to direct or control other employees
Need for institutional power organizing other employees to meet
the organizations objectives

Managers and leaders with a need for institutional power are

likely to contribute more to a business enterprise than
someone whose need for power is a personal one

May also want to have more status within the organization

 THE NEED FOR AFFILIATION (N-AFF)

Generally seek harmonious relationships with other people in

the organization

They need to feel accepted and are motivated to work with

other people

Works well as a member of the team and enjoys social

interaction

Often work well in marketing, sales and customer service

CASE STUDY: MOTIVATING GENERATION Y
EMPLOYEES
1. Explain the dif ferences between McClellands need for
power and the need for achievement.
A person with a need for power (n-Pow) can have a need for personal
power and to direct or control other employees and/or a need for
institutional power (a need to organize other employees to attain
objectives)
People with a high need for achievement (n-Ach) aim for excellence
meaning they likely avoid low -risk situations due to lack of satisfaction.
Also tend to avoid high-risk situations as they fear not achieving those.

2. To what extent do you think that David McClellands

explanation of the dif fering behavior of the older and
younger employees at the CIMB Thai Group is the only valid
one?
 THE IMPLICATIONS OF MCCLELLANDS
WORK
Employees with dif ferent needs require dif ferent roles and
tasks to be motivated ef fectively:
High need for achievement employees should be given
demanding tasks that are reasonable to achieve.
Require regular, positive feedback
High need for authority and power employees will flourish
when controlling others.
Supervisory role for junior employees; manager role for more senior
employees
High need for af filiation employee should work in teams and
interact with other employees.